Hi, as I get my bank account set up to transfer money to Tesla on delivery, I notice that they are now using the interbank transfer system called "Plaid" (no relation to the car I guess). That system requires putting your bank account log in info into the system. I have read about Plaid, and it does seem to be widely used, but I wondered if anyone here had an opinion on it, positive or negative?
Thanks!
[note, this system is asking for not only account number and bank routing number, but also your account login credentials--this last part is new to me]
Plaid thus far is really not quite 'widely used'. Probably their largest customer is Stripe. Their entire business is pretty much API standardization and simplification, so it appeals to startups and smaller entities that tend to be short fo financial systems expertise. From our perspective they skip the direst account confirmation verification steps that are the traditional methods and substitute direct customer access data. They use the same approach as the data aggregators do.
That means that anybody taking payments through them has ceded almost all control to the entity debiting the account, since from your own financial institution perspective it is you yourself doing the transaction.
In other words making a payment though them it is impossible to protest a payment with your own institution. The customer is liable for a fraudulent transaction if the customer gave full login credentials to a third party.
There are many easy payment processes that allow one to control their own payments. I personally would neither recommend them to a Fintech nor a consumer.
As a merchant if their customers allow it, I might do it. However even a merchant is 100% dependent on their systems integrity and freedom from hacking. That is a large risk with an auto purchase, for example.
Other people have different views. I will not ever use such a system.
FWIW, I have consulted with several major institutions regarding payment systems fraud, on both credit card, bank account and brokerage account subjects.
100% explicitly reject any liability at all for any fraud which happens because customer login credential have been given to a third party. Check litigation histories if you doubt that. This is a worldwide problem, growing regularly. Solutions like Plaid are simply not safe to use.
I am very sad Tesla would accept such a solution.